Decision-Day Guide: Fed to pause and keep option to hike in July

The Federal Reserve is expected to keep interest rates on hold during its meeting today, marking the first pause in raising rates in 15 months. While concerns on inflation remain high, Chair Jerome Powell suggested the central bank would rather take time to assess the impact of the previous rate hikes. The Fed’s committee will keep options open for hiking interest rates again in July or September due to inflation running more than twice their goal. The statement is expected to retain a bias toward hiking rates without making any firm commitments, while economists predict a few dissents from FOMC regarding the pause.